Copper price slumps on selloff ahead of Chinese holiday

Copper prices fell sharply on Wednesday as traders rushed to close positions ahead of China’s five-day Labour Day holiday, compounding pressure from weakening fundamentals and rising concerns over a global supply glut.On the COMEX, copper for July delivery dropped 5.4% to $4.609 per pound ($10,139 per tonne) in morning trading. The selloff was driven in part by Chinese investors unwinding arbitrage trades across New York, London, and Shanghai. Wednesday marked the final trading day in China before the holiday.Adding to bearish sentiment was a key Chinese manufacturing index that came in significantly below expectations, suggesting factory activity is contracting amid growing trade tensions with the U.S. The data undercut recent optimism fueled by plunging stockpiles and rising import premiums in China.Surplus set to double in 2025The downturn also follows a revised forecast from the International Copper Study Group (ICSG), which now expects the global copper surplus to more than double in 2025.After wrapping up its biannual meeting with industry leaders in Lisbon, the ICSG said it expects the global surplus to reach 289,000 tonnes next year, up from 138,000 tonnes in 2024 and significantly higher than its prior projection of 194,000 tonnes for 2025.The surplus is forecast to remain elevated in 2026 at 209,000 tonnes, marking a third consecutive year of oversupply following a balanced market in 2023.According to the group, the growing surplus reflects a mix of rising production and softening demand, with U.S. tariffs and global trade uncertainties weighing on industrial consumption.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com